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Bulletin No. 2013-8February 19, 2013

HIGHLIGHTSOF THIS ISSUEThese synopses are intended only as aids to the reader inidentifying the subject matter covered. They may not berelied upon as authoritative interpretations.

INCOME TAX

Rev. Rul. 2013–3, page 500.Federal rates; adjusted federal rates; adjusted federallong-term rate and the long-term exempt rate. For pur-poses of sections 382, 642, 1274, 1288, and other sectionsof the Code, tables set forth the rates for February 2013.

Notice 2013–10, page 503.This notice provides guidance to certain domestic entities con-cerning the first taxable year they must report specified foreignfinancial assets under section 6038D of the Code. Reportingby domestic entities will not be required before the date spec-ified by final regulations, which will not be earlier than taxableyears beginning after December 31, 2012.

Rev. Proc. 2013–18, page 503.General rules and specifications for substitute FormsW–2 and W–3. This procedure provides specifications forthe W–3 red-ink and W–2 black-and-white substitute forms forthe 2012 revision. This procedure will be reproduced as thenext revision of Publication 1141. Rev. Proc. 2011–62 super-seded.

EMPLOYMENT TAX

Rev. Proc. 2013–18, page 503.General rules and specifications for substitute FormsW–2 and W–3. This procedure provides specifications forthe W–3 red-ink and W–2 black-and-white substitute forms forthe 2012 revision. This procedure will be reproduced as thenext revision of Publication 1141. Rev. Proc. 2011–62 super-seded.

Finding Lists begin on page ii.

The IRS MissionProvide America’s taxpayers top-quality service by helpingthem understand and meet their tax responsibilities and en-

force the law with integrity and fairness to all.

IntroductionThe Internal Revenue Bulletin is the authoritative instrument ofthe Commissioner of Internal Revenue for announcing officialrulings and procedures of the Internal Revenue Service and forpublishing Treasury Decisions, Executive Orders, Tax Conven-tions, legislation, court decisions, and other items of generalinterest. It is published weekly and may be obtained from theSuperintendent of Documents on a subscription basis. Bulletincontents are compiled semiannually into Cumulative Bulletins,which are sold on a single-copy basis.

It is the policy of the Service to publish in the Bulletin all sub-stantive rulings necessary to promote a uniform application ofthe tax laws, including all rulings that supersede, revoke, mod-ify, or amend any of those previously published in the Bulletin.All published rulings apply retroactively unless otherwise indi-cated. Procedures relating solely to matters of internal man-agement are not published; however, statements of internalpractices and procedures that affect the rights and duties oftaxpayers are published.

Revenue rulings represent the conclusions of the Service on theapplication of the law to the pivotal facts stated in the revenueruling. In those based on positions taken in rulings to taxpayersor technical advice to Service field offices, identifying detailsand information of a confidential nature are deleted to preventunwarranted invasions of privacy and to comply with statutoryrequirements.

Rulings and procedures reported in the Bulletin do not have theforce and effect of Treasury Department Regulations, but theymay be used as precedents. Unpublished rulings will not berelied on, used, or cited as precedents by Service personnel inthe disposition of other cases. In applying published rulings andprocedures, the effect of subsequent legislation, regulations,

court decisions, rulings, and procedures must be considered,and Service personnel and others concerned are cautionedagainst reaching the same conclusions in other cases unlessthe facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code.This part includes rulings and decisions based on provisions ofthe Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation.This part is divided into two subparts as follows: Subpart A,Tax Conventions and Other Related Items, and Subpart B, Leg-islation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.To the extent practicable, pertinent cross references to thesesubjects are contained in the other Parts and Subparts. Alsoincluded in this part are Bank Secrecy Act Administrative Rul-ings. Bank Secrecy Act Administrative Rulings are issued bythe Department of the Treasury’s Office of the Assistant Secre-tary (Enforcement).

Part IV.—Items of General Interest.This part includes notices of proposed rulemakings, disbar-ment and suspension lists, and announcements.

The last Bulletin for each month includes a cumulative indexfor the matters published during the preceding months. Thesemonthly indexes are cumulated on a semiannual basis, and arepublished in the last Bulletin of each semiannual period.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

February 19, 2013 2013–8 I.R.B.

Part I. Rulings and Decisions Under the Internal Revenue Codeof 1986Section 42.—Low-IncomeHousing Credit

The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the monthof February 2013. See Rev. Rul. 2013-3, page 500.

Section 280G.—GoldenParachute Payments

Federal short-term, mid-term, and long-term ratesare set forth for the month of February 2013. See Rev.Rul. 2013-3, page 500.

Section 383.—Limitationon Net Operating LossCarryforwards and CertainBuilt-In Losses FollowingOwnership Change

The adjusted applicable federal long-term rate isset forth for the month of February 2013. See Rev.Rul. 2013-3, page 500.

Section 412.—MinimumFunding Standards


Section 467.—CertainPayments for the Use ofProperty or Services


Section 468.—SpecialRules for Mining and SolidWaste Reclamation andClosing Costs


Section 482.—Allocationof Income and DeductionsAmong Taxpayers


Section 483.—Interest onCertain Deferred Payments


Section 642.—SpecialRules for Credits andDeductions


Section 807.—Rules forCertain Reserves


Section 846.—DiscountedUnpaid Losses Defined


Section 1274.—Determi-nation of Issue Price in theCase of Certain Debt Instru-ments Issued for Property(Also Sections 42, 280G, 382, 412, 467, 468, 482,483, 642, 807, 846, 1288, 7520, 7872.)

Federal rates; adjusted federal rates;adjusted federal long-term rate and thelong-term exempt rate. For purposes of

sections 382, 642, 1274, 1288, and othersections of the Code, tables set forth therates for February 2013.

Rev. Rul. 2013–3

This revenue ruling provides variousprescribed rates for federal income taxpurposes for February 2013 (the currentmonth). Table 1 contains the short-term,mid-term, and long-term applicable fed-eral rates (AFR) for the current monthfor purposes of section 1274(d) of theInternal Revenue Code. Table 2 containsthe short-term, mid-term, and long-termadjusted applicable federal rates (ad-justed AFR) for the current month forpurposes of section 1288(b). Table 3 setsforth the adjusted federal long-term rateand the long-term tax-exempt rate de-scribed in section 382(f). Table 4 containsthe appropriate percentages for deter-mining the low-income housing creditdescribed in section 42(b)(1) for build-ings placed in service during the currentmonth. However, under section 42(b)(2),the applicable percentage for non-feder-ally subsidized new buildings placed inservice after July 30, 2008, and beforeDecember 31, 2013, shall not be less than9%. Finally, Table 5 contains the federalrate for determining the present value ofan annuity, an interest for life or for a termof years, or a remainder or a reversionaryinterest for purposes of section 7520.

2013–8 I.R.B. 500 February 19, 2013

REV. RUL. 2013–3 TABLE 1

Applicable Federal Rates (AFR) for February 2013

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term

AFR .21% .21% .21% .21%110% AFR .23% .23% .23% .23%120% AFR .25% .25% .25% .25%130% AFR .27% .27% .27% .27%

Mid-term

AFR 1.01% 1.01% 1.01% 1.01%110% AFR 1.11% 1.11% 1.11% 1.11%120% AFR 1.21% 1.21% 1.21% 1.21%130% AFR 1.31% 1.31% 1.31% 1.31%150% AFR 1.53% 1.52% 1.52% 1.52%175% AFR 1.78% 1.77% 1.77% 1.76%

Long-term

AFR 2.52% 2.50% 2.49% 2.49%110% AFR 2.77% 2.75% 2.74% 2.73%120% AFR 3.02% 3.00% 2.99% 2.98%130% AFR 3.28% 3.25% 3.24% 3.23%


Adjusted AFR for February 2013

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-termadjusted AFR .29% .29% .29% .29%

Mid-term adjusted AFR 1.15% 1.15% 1.15% 1.15%

Long-termadjusted AFR 2.77% 2.75% 2.74% 2.73%


Rates Under Section 382 for February 2013

Adjusted federal long-term rate for the current month 2.77%

Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjustedfederal long-term rates for the current month and the prior two months.) 2.83%


Appropriate Percentages Under Section 42(b)(1) for February 2013

Note: Under Section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service afterJuly 30, 2008, and before December 31, 2013, shall not be less than 9%.

Appropriate percentage for the 70% present value low-income housing credit 7.40%

Appropriate percentage for the 30% present value low-income housing credit 3.17%

February 19, 2013 501 2013–8 I.R.B.


Rate Under Section 7520 for February 2013

Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years,or a remainder or reversionary interest 1.20%

Section 1288.—Treatmentof Original Issue Discounton Tax-Exempt Obligations


Section 7520.—ValuationTables


Section 7872.—Treatmentof Loans With Below-MarketInterest Rates


2013–8 I.R.B. 502 February 19, 2013

Part III. Administrative, Procedural, and MiscellaneousInformation Reporting byDomestic Entities UnderSection 6038D With Respectto Specified Foreign FinancialAssets

Notice 2013–10

This notice provides guidance to do-mestic entities concerning the first taxableyear certain domestic entities will be re-quired to report interests in specified for-eign financial assets under section 6038Dof the Internal Revenue Code (Code).

Section 6038D was enacted by section511 of the Hiring Incentives to RestoreEmployment Act, Pub. L. No. 111–147,124 Stat. 71 (the HIRE Act), and appliesto taxable years beginning after March 18,2010. Section 6038D(a) requires an indi-vidual who holds any interest in a specifiedforeign financial asset during any taxableyear to attach a statement to that individ-ual’s return of tax imposed by subtitle A ofthe Code for the taxable year to report theinformation identified in section 6038D(c)if the aggregate value of all such assets inwhich the individual holds an interest ex-ceeds $50,000 (or such higher amount as

the Secretary may specify) for such taxableyear.

Section 6038D(f) authorizes the Secre-tary to issue regulations or other guidanceapplying the provisions of section 6038Dto any domestic entity as if the domesticentity were an individual, if the domesticentity is formed or availed of for purposesof holding, directly or indirectly, specifiedforeign financial assets.

On December 19, 2011, the InternalRevenue Service (IRS) and the Depart-ment of the Treasury (Treasury Depart-ment) published temporary regulationsproviding guidance to individuals requiredto report specified foreign financial assetswith their annual return pursuant to sec-tion 6038D. T.D. 9567, 2012–8 I.R.B. 395(76 FR 78553). On December 19, 2011,the IRS and the Treasury Department alsopublished a notice of proposed rulemak-ing that cross-referenced those temporaryregulations and also included Prop. Reg.§ 1.6038D–6. REG–130302–10, 2012–8I.R.B. 412 (76 FR 78594).

Prop. Reg. § 1.6038D–6 sets out theconditions under which a domestic entitywill be considered a specified domesticentity and, therefore, required to report

specified foreign financial assets in whichthe entity holds an interest. Prop. Reg.§ 1.6038D–6 is proposed to apply to tax-able years beginning after December 31,2011.

The IRS and the Treasury Departmentintend that, when final regulations are is-sued under section 6038D, those final reg-ulations will modify the effective/applica-bility date of Prop. Reg. § 1.6038D–6. Re-porting by domestic entities of interests inspecified foreign financial assets will notbe required before the date specified by fi-nal regulations, which will not be earlierthan taxable years beginning after Decem-ber 31, 2012.

The principal author of this notice isJoseph S. Henderson of the Office of As-sociate Chief Counsel (International). Forfurther information about this notice, con-tact Mr. Henderson at (202) 622–3840 (nota toll-free call).

Note. This revenue procedure will be reproduced as the next revision of IRS Publication 1141, General Rules and Specifications forSubstitute Forms and Schedules.

26 CFR 601.602: Tax forms and instructions.(Also Part 1, Sections 6041, 6051, 6071, 6081, 6091; 1.6041–1, 1.6041–2, 31.6051–1, 31.6051–2, 31.6071(a)–1, 31.6081(a)–1, 31.6091–1.)

Rev. Proc. 2013–18

TABLE OF CONTENTS

PART 1 — GENERAL

SECTION 1.1 — PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 504

SECTION 1.2 — WHAT’S NEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506

SECTION 1.3 — GENERAL RULES FOR PAPER FORMS W–2 AND W–3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506

SECTION 1.4 — GENERAL RULES FOR FILING FORMS W–2 (COPY A) ELECTRONICALLY . . . . . . . . . . . . . . . . . . . . . . . . . . . . 508

PART 2 — SPECIFICATIONS FOR SUBSTITUTE FORMS W–2 AND W–3

SECTION 2.1 — SPECIFICATIONS FOR RED-INK SUBSTITUTE FORM W–2 (COPY A) AND FORM W–3FILED WITH THE SSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 508

SECTION 2.2 — SPECIFICATIONS FOR SUBSTITUTE BLACK-AND-WHITE COPY A AND W–3 FORMSFILED WITH THE SSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511

February 19, 2013 503 2013–8 I.R.B.

SECTION 2.3 — REQUIREMENTS FOR SUBSTITUTE FORMS FURNISHED TO EMPLOYEES (COPIESB, C, AND 2 OF FORM W–2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513

SECTION 2.4 — ELECTRONIC DELIVERY OF FORM W–2 AND W–2C RECIPIENT STATEMENTS. . . . . . . . . . . . . . . . . . . . . . . . 516

PART 3 — ADDITIONAL INSTRUCTIONS

SECTION 3.1 — ADDITIONAL INSTRUCTIONS FOR FORM PRINTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 516

SECTION 3.2 — INSTRUCTIONS FOR EMPLOYERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517

SECTION 3.3 — OMB REQUIREMENTS FOR BOTH RED-INK AND BLACK-AND-WHITE COPY A ANDW–3 SUBSTITUTE FORMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518

SECTION 3.4 — REPRODUCIBLE COPIES OF FORMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518

SECTION 3.5 — EFFECT ON OTHER DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 519

SECTION 3.6 — EXHIBITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 519

Part 1General

Section 1.1 — Purpose

.01 The purpose of this revenue procedure is to state the requirements of the Internal Rev-enue Service (IRS) and the Social Security Administration (SSA) regarding the preparation anduse of substitute forms for Form W–2, Wage and Tax Statement, and Form W–3, Transmittalof Wage and Tax Statements, for wages paid during the 2012 calendar year.

.02 For purposes of this revenue procedure, substitute Form W–2 (Copy A) and substituteForm W–3 are forms that are not printed by the IRS. Copy A or any other copies of a substituteForm W–2 or a substitute Form W–3 must conform to the specifications in this revenue proce-dure to be acceptable to the IRS and the SSA. No IRS office is authorized to allow deviationsfrom this revenue procedure. Preparers should also refer to the 2012 General Instructions forForms W–2 and W–3 for details on how to complete these forms. See Part 3, Section 3.4, forinformation on obtaining the official IRS forms and instructions. See Part 2, Sections 2.3 and3.4, for requirements for the copies of substitute forms furnished to employees.

.03 For purposes of this revenue procedure, the official IRS-printed red dropout ink FormsW–2 (Copy A) and W–3, and their exact substitutes, are referred to as “red-ink.” The SSA-approved black-and-white Forms W–2 (Copy A) and W–3 are referred to as “substitute black-and-white Copy A” and “substitute black-and-white W–3” forms.

Any questions about the red-ink Form W–2 (Copy A) and Form W–3 and the substituteemployee statements should be emailed to [email protected]. Please enter “SubstituteForms” on the subject line. Or send your questions to:

Internal Revenue ServiceAttn: Substitute Forms ProgramSE:W:CAR:MP:T:M:S, IR 65261111 Constitution Ave., NWWashington, DC 20224

Any questions about the black-and-white Copy A and W–3 forms should be emailed [email protected] or sent to:

2013–8 I.R.B. 504 February 19, 2013

Social Security AdministrationData Operations CenterAttn: Substitute Black-and-White Copy A Forms, Room 3481150 E. Mountain DriveWilkes-Barre, PA 18702–7997

Note. You should receive a response from either the IRS or the SSA within 30 days.

.04 Some Forms W–2 that include logos, slogans, and advertisements (including adver-tisements for tax preparation software) may be confused with questionable Forms W–2. Anemployee may not recognize the importance of the employee copy for tax reporting purposesdue to the use of logos, slogans, and advertisements. Thus, the IRS has determined that lo-gos, slogans, and advertising on Forms W–3, Copy A of Forms W–2, or any employee copiesreporting wages paid during the 2012 calendar year will not be allowed, with the followingexceptions:

• Forms may include the exact name of the employer or agent, primary trade name, trade-mark, service mark, or symbol of the employer or agent.

• Forms may include an embossment or watermark on the information return (and copies)that is a representation of the name, a primary trade name, trademark, service mark, orsymbol of the employer or agent.

• Presentation may be in any typeface, font, stylized fashion, or print color normally used bythe employer or agent, and used in a non-intrusive manner.

• These items must not materially interfere with the ability of the recipient to recognize,understand, and use the tax information on the employee copies.

• Corrected information on information returns and employee copies that was shown onForms W–2 for amounts paid before January 1, 2012, is an exception.

The IRS e-file logo on the IRS official employee copies may be included, but it is not re-quired on any of the substitute form copies.

The information return and employee copies must clearly identify the employer’s name as-sociated with its employer identification number.

Logos and slogans, may be used on permissible enclosures, such as a check or accountstatement, other than information returns and payee copies.

Forms W–2 and W–3 are subject to annual review and possible change. This revenue pro-cedure may be revised at a future date to state other requirements of the IRS and the SSAregarding the preparation and use of substitutes for Form W–2 and Form W–3 for wages paidduring the 2013 calendar year. If you have comments about the restrictions on including logos,slogans, and advertising on information returns and employee copies, send or email your com-ments to: Internal Revenue Service, Attn: Substitute Forms Program, SE:W:CAR:MP:T:M:S,IR 6526, 1111 Constitution Ave., NW, Washington, DC, 20224 or [email protected].

.05 The Internal Revenue Service/Information Returns Branch (IRS/IRB) maintains acentralized customer service call site to answer questions related to information returns(Forms W–2, W–3, W–2c, W–3c, 1099 series, 1096, etc.). You can reach the call site at1–866–455–7438 (toll-free) or 304–263–8700 (not a toll-free number). Persons with a hearingor speech disability with access to Telecommunication Device for the Deaf (TDD) can call304–579–4827 (not a toll-free number). The hours of operation are Monday through Fridayfrom 8:30 a.m. to 4:30 p.m. Eastern time. You may also send questions to the call site viathe Internet at [email protected]. IRS/IRB does not process information returns which arefiled on paper forms. IRS/IRB does not process Forms W–2 (Copy A). Forms W–2 (CopyA) prepared on paper or electronically must be filed with the SSA. IRS/IRB does, however,process waiver requests (Form 8508, Request for Waiver From Filing Information ReturnsElectronically) and extension of time to file requests (Form 8809, Application for Extensionof Time To File Information Returns) for Forms W–2 (Copy A) and requests for an extensionof time to furnish the employee copies of Form W–2. See Publication 1220, Specifications

February 19, 2013 505 2013–8 I.R.B.

for Filing Forms 1097–BTC, 1098, 1099, 3921, 3922, 5498, 8935, and W–2G Electronically,for information on waivers and extensions of time.

.06 The following form instructions and publications provide more detailed filing proce-dures for certain information returns:

• General Instructions for Forms W–2 and W–3,• Publication 1223, General Rules and Specifications for Substitute Forms W–2c and W–3c.

Section 1.2 — What’s New

.01 Measurements for the 2012 Forms W-2 and W-3 exhibits have not changed. Themeasurements for the 2012 Forms W-2 and W-3 exhibits have not changed from 2011, andwill be posted in the 2012 revision of Publication 1141.

.02 Logos, slogans, and advertising. The rules relating to inclusion and restriction of logos;slogans; and advertising on Form W–3, Form W–2 (Copy A), or any employee copies havebeen updated and clarified. See Section 1.04 for updated and additional guidance.

.03 Forms W–2 and W–3 future developments. The IRS has created a page on IRS.govfor information about Forms W–2 and W–3 and their instructions, at www.irs.gov/w2.

.04 New title for instructions. The title of the Instructions for Forms W–2 and W–3 hasbeen changed to the “General Instructions” for Forms W–2 and W–3. These instructions nowinclude instructions for U.S. possessions and corrected wage and tax statements.

.05 Form W–3, Kind of Employer. The specific instructions for the checkboxes in box b,Kind of employer, of Form W–3 include examples for various types of section 501c Organi-zations.

.06 Employee social security tax withholding. The 4.2% rate of social security tax with-holding (for employees only) is extended for wage payments made in 2012.

.07 Reporting the cost of group health insurance coverage. You must report the cost ofemployer-sponsored health coverage in box 12 using code DD.

.08 Foreign agricultural workers . You must report on Form W–2 compensation of $600or more that you pay to H–2A visa agricultural workers.

.09 Editorial changes. We made editorial changes. Redundancies were eliminated as muchas possible.

Section 1.3 — General Rules for Paper Forms W–2 and W–3

.01 Employers not filing electronically must file paper Forms W–2 (Copy A) along withForm W–3 with the SSA by using either the official IRS form or a substitute form that exactlymeets the specifications shown in Parts 2 and 3 of this revenue procedure.

Note. www.cnmidof.net http//www.hacienda.gobierno.pr. Substitute territorial forms(W–2AS, W–2GU, W–2VI, W–3SS) should also conform to the specifications as outlined inthis revenue procedure. These forms require the form designation (“W–2AS,” “W–2GU,”“W–2VI”) on Copy A to be in black ink. If you are an employer in the Commonwealthof the Northern Mariana Islands, you must contact the Department of Finance, Division ofRevenue and Taxation, Commonwealth of the Northern Mariana Islands, P.O. Box 5234CHRB, Saipan, MP 96950 or www.cnmidof.net to get Form W–2CM and instructions forcompleting and filing the form. For information on Forms 499R–2/W–2PR, use this website:http//www.hacienda.gobierno.pr.

2013–8 I.R.B. 506 February 19, 2013

Employers who file with the SSA electronically or on paper may design their own statementsto furnish to employees. These employee statements designed by employers must comply withthe requirements shown in Parts 2 and 3.

.02 Red-ink substitute forms that completely conform to the specifications contained in thisrevenue procedure may be privately printed without prior approval from the IRS or the SSA.Only the substitute black-and-white Copy A and W–3 forms need to be submitted to the SSAfor approval, prior to their use (see Section 2.2 of Part 2).

.03 As in the past, SSA-approved black-and-white Copy A and Form W–3 may be generatedusing a printer by following all guidelines and specifications (also see Section 2.2 of Part 2).In general, regardless of the method of entering data, using black ink on Forms W–2 and W–3provides better readability for processing by scanning equipment. Colors other than black arenot easily read by the scanner and may result in delays or errors in the processing of FormsW–2 (Copy A) and W–3. The printing of the data should be centered within the boxes. Thesize of the variable data must be printed in a font no smaller than 10-point.

Note. With the exception of the identifying number, the year, the form number for Form W–3,and the corner register marks, the preprinted form layout for the red-ink Forms W–2 (Copy A)and W–3 must be in Flint J–6983 red OCR dropout ink or an exact match.

.04 Substitute forms filed with the SSA and substitute copies furnished to employees thatdo not conform to these specifications are unacceptable. Forms W–2 (Copy A) and W–3 filedwith the SSA that do not conform may be returned. In addition, penalties may be assessed fornot complying with the form specifications.

.05 Substitute red-ink forms should not be submitted to either the IRS or the SSA for specificapproval. If you are uncertain of any specification and want clarification, do the following.

(1) Submit a letter or email citing the specification to the appropriate address in Section1.1 of Part 1.

(2) State your understanding of the specification.

(3) Enclose an example (if appropriate) of how the form would appear if produced usingyour understanding.

(4) Be sure to include your name, complete address, phone number, and if applicable, youremail address with your correspondence.

.06 Any questions about the specifications, especially those for the red-ink Form W–2 (CopyA) and Form W–3, should be emailed to: [email protected]. Please enter “SubstituteForms” on the subject line, or send your questions to:

Internal Revenue ServiceAttn: Substitute Forms ProgramSE:W:CAR:MP:T:M:S, IR 65261111 Constitution Ave., NWWashington, DC 20224

Any questions about the substitute black-and-white Copy A and W–3 should be emailed [email protected] or sent to:


Note. You should receive a response within 30 days from either the IRS or the SSA.

February 19, 2013 507 2013–8 I.R.B.

.07 Forms W–2 and W–3 are subject to annual review and possible change. Therefore,employers are cautioned against overstocking supplies of privately-printed substitutes.

.08 Separate instructions for Forms W–2 and W–3 are provided in the 2012 General Instruc-tions for Forms W–2 and W–3. Form W–3 should be used only to transmit paper Forms W–2(Copy A). Form W–3 is a single sheet including only essential filing information. Be sure tomake a copy of your completed Form W–3 for your records. Copies of the current year officialIRS Forms W–2 and W–3, and the instructions for those forms, may be obtained from mostIRS offices or by calling 1–800–829–3676. The IRS provides only cutsheet sets of Forms W–2and cutsheets of Form W–3. The instructions and information copies of the forms may also befound at IRS.gov.

.09 Because substitute Forms W–2 (Copy A) and W–3 are machine-imaged and scanned bythe SSA, the forms must meet the same specifications as the official IRS Forms W–2 and W–3(as shown in the exhibits).

Section 1.4 — General Rules for Filing Forms W–2 (Copy A) Electronically

.01 Employers must file Forms W–2 (Copy A) with the SSA electronically if they are re-quired to file 250 or more for a calendar year unless the IRS grants a waiver. For details, getthe 2012 General Instructions for Forms W–2 and W–3. The SSA publication EFW2, Specifi-cations for Filing Forms W–2 Electronically, contains specifications and procedures for elec-tronic filing of Form W–2 information with the SSA. Employers are cautioned to obtain themost recent revision of EFW2 (and supplements) due to any subsequent changes in specifica-tions and procedures.

.02 You may obtain a copy of the EFW2 by:

• Accessing the SSA website at: www.socialsecurity.gov/employer/pub.htm.

.03 Electronic filers do not file a paper Form W–3. See the SSA publication EFW2 forguidance on transmitting Form W–2 (Copy A) information to SSA electronically.

.04 Employers filing fewer than 250 Forms W–2 are encouraged to electronically file FormsW–2 (Copy A) with the SSA. Doing so will enhance the timeliness and accuracy of formsprocessing. You may visit the SSA’s employer website at www.socialsecurity.gov/employer.This helpful site has links to Business Services Online (BSO) and tutorials on registering andusing BSO to file your Forms W–2.

.05 Employers who do not comply with the electronic filing requirements for Form W–2(Copy A) and who are not granted a waiver by the IRS may be subject to penalties. Employerswho file Form W–2 information with the SSA electronically must not send the same data to theSSA on paper Forms W–2 (Copy A). Any duplicate reporting may subject filers to unnecessarycontacts by the SSA or the IRS.

Part 2Specifications for Substitute Forms W–2 and W–3

Section 2.1 — Specifications for Red-Ink Substitute Form W–2 (Copy A) and Form W–3Filed with the SSA

.01 The official IRS-printed red dropout ink Form W–2 (Copy A) and W–3 and their exactsubstitutes are referred to as red-ink in this revenue procedure. Employers may file substituteForms W–2 (Copy A) and W–3 with the SSA. The substitute forms must be exact replicas of

2013–8 I.R.B. 508 February 19, 2013

the official IRS forms with respect to layout and content because they will be read by scannerequipment.

Note. Even the slightest deviation can result in incorrect scanning, and may affect moneyamounts reported for employees.

.02 Paper used for cutsheets and continuous-pinfed forms for substitute Form W–2 (Copy A)and Form W–3 that are to be filed with the SSA must be white 100% bleached chemical wood,18–20 pound paper only, optical character recognition (OCR) bond produced in accordancewith the following specifications:

• Acidity: Ph value, average, not less than. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.5• Basis Weight: 17 x 22 inch 500 cut sheets, pound. . . . . . . . . . . . . . . . . . . . 18–20• Metric equivalent—gm./square meter

(a tolerance of +5 pct. is allowed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68–75• Stiffness: Average, each direction, not less than—milligrams

Cross direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Machine direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

• Tearing strength: Average, each direction, not less than—grams . . . . . . . 40• Opacity: Average, not less than—percent . . . . . . . . . . . . . . . . . . . . . . . . . . . 82• Reflectivity: Average, not less than—percent . . . . . . . . . . . . . . . . . . . . . . . 68• Thickness: Average—inch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0038

Metric equivalent—mm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.097(a tolerance of +0.0005 inch (0.0127 mm) is allowed)Paper cannot vary more than 0.0004 inch (0.0102 mm)from one edge to the other.

• Porosity: Average, not less than—seconds . . . . . . . . . . . . . . . . . . . . . . . . . . 10• Finish (smoothness): Average, each side—seconds . . . . . . . . . . . . . . . . . . 20–55

(for information only) the Sheffield equivalent—units. . . . . . . . . . . . . . . . 170-d200• Dirt: Average, each side, not to exceed—parts per million . . . . . . . . . . . . 8

Note. Reclaimed fiber in any percentage is permitted, provided the requirements of this stan-dard are met.

.03 All printing of red-ink substitute Forms W–2 (Copy A) and W–3 must be in Flint redOCR dropout ink except as specified below. The following must be printed in nonreflectiveblack ink:

• Identifying number “22222” or “33333” at the top of the forms.• Tax year at the bottom of the forms.• The four (4) corner register marks on the forms.• The form identification number (“W–3”) at the bottom of Form W–3.• All the instructions below Form W–3 beginning with “Send this entire page....” line to the

bottom of Form W–3.

.04 The vertical and horizontal spacing for all federal payment and data boxes on Forms W–2and W–3 must meet specifications. On Form W–3 and Form W–2 (Copy A), all the perimeterrules must be 1-point (0.014-inch), while all other rules must be one-half point (0.007-inch).Vertical rules must be parallel to the left edge of the form; horizontal rules parallel to the topedge.

.05 The official red-ink Form W–3 and Form W–2 (Copy A) are 7.5 inches wide. Employersfiling Forms W–2 (Copy A) with the SSA on paper must also file a Form W–3. Form W–3 mustbe the same width (7.5 inches) as the Form W–2. One Form W–3 is printed on a standard-size,8.5 x 11-inch page. Two official Forms W–2 (Copy A) are contained on a single 8.5 x 11-inchpage (exclusive of any snap-stubs).

.06 The top, left, and right margins for the Form W–2 (Copy A) and Form W–3 are .5 inches(1/2 inch). All margins must be free of printing except for the words “DO NOT STAPLE” onred-ink Form W–3. The space between the two Forms W–2 (Copy A) is 1.33 inches.

February 19, 2013 509 2013–8 I.R.B.

.07 The identifying numbers are “22222” for Form W–2 (Copies A (and 1)) and “33333”for Form W–3. No printing should appear anywhere near the identifying numbers.

Note. The identifying number must be printed in nonreflective black ink in OCR-A font of 10characters per inch.

.08 The depth of the individual scannable image on a page must be the same as that on theofficial IRS forms. The depth from the top line to the bottom line of an individual Form W–2(Copy A) must be 4.17 inches and the depth from the top line to the bottom line of Form W–3must be 4.67 inches.

.09 Continuous-pinfed Forms W–2 (Copy A) must be separated into 11-inch deep pages.The pinfed strips must be removed when Forms W–2 (Copy A) are filed with the SSA. Thetwo Forms W–2 (Copy A) on the 11-inch page must not be separated (only the pages are tobe separated (burst)). The words “Do Not Cut, Fold, or Staple Forms on This Page” must beprinted twice between the two Forms W–2 (Copy A) in Flint red OCR dropout ink. All othercopies (Copies 1, B, C, 2, and D) must be able to be distinguished and separated into individualforms.

.10 Box 12 of Form W–2 (Copy A) contains four entry boxes – 12a, 12b, 12c, and 12d. Donot make more than one entry per box. Enter your first code in box 12a (for example, enterCode D in box 12a, not 12d, if it is your first entry). If more than four items need to be reportedin box 12, use a second Form W–2 to report the additional items (see “Multiple forms” in the2012 General Instructions for Forms W–2 and W–3). Do not report the same federal tax data tothe SSA on more than one Form W–2 (Copy A). However, repeat the identifying information(employee’s name, address, and SSN; employer’s name, address, and EIN) on each additionalform.

.11 The checkboxes in box 13 of Form W–2 (Copy A) must be .14 inches each; the spacebefore the first checkbox is .20 inches; the spacing on each remaining side of the 3 checkboxesis .36 inches (see Exhibit A). The checkboxes in box b of Form W–3 must also be .14 inches.

Note. More than 50% of an applicable checkbox must be covered by an “X.”

.12 All substitute Forms W–2 (Copy A) and W–3 in the red-ink format must have the taxyear, form number, and form title printed on the bottom face of each form using type identicalto that of the official IRS form. The red-ink substitute Form W–2 (Copy A) and Form W–3must have the form producer’s EIN entered directly to the left of “Department of the Treasury,”in red.

.13 The words “For Privacy Act and Paperwork Reduction Act Notice, see back of CopyD.” must be printed in Flint red OCR dropout ink in the same location as on the official FormW–2 (Copy A). The words “For Privacy Act and Paperwork Reduction Act Notice, see backof Copy D of Form W–2.” must be printed at the bottom of the page of Form W–3 in black ink.

.14 The Office of Management and Budget (OMB) Number must be printed on substituteForms W–3 and W–2 (on each ply) in the same location as on the official IRS forms.

.15 All substitute Forms W–3 must include the instructions that are printed on the samesheet below the official IRS form.

.16 The back of substitute Form W–2 (Copy A) and Form W–3 must be free of all printing.

.17 All copies must be clearly legible. Fading must be minimized to assure legibility.

.18 Chemical transfer paper is permitted for Form W–2 (Copy A) only if the followingstandards are met:

• Only chemically-backed paper is acceptable for Form W–2 (Copy A). Front and back chem-ically-treated paper cannot be processed properly by scanning equipment.

• Chemically-transferred images must be black.• Carbon-coated forms are not permitted.

2013–8 I.R.B. 510 February 19, 2013

.19 The Government Printing Office (GPO) symbol and the Catalog Number (Cat. No.)must be deleted from substitute Form W–2 (Copy A) and Form W–3.

Section 2.2 — Specifications for Substitute Black-and-White Copy A and W–3 FormsFiled with the SSA

.01 The SSA-approved substitute black-and-white Forms W–2 (Copy A) and W–3 are re-ferred to as substitute black-and-white Copy A and W–3. Specifications for the substituteblack-and-white Copy A and W–3 are similar to the red-ink forms (Part 2, Section 2.1) exceptfor the items that follow (see Exhibits E and F). Exhibits are samples only and must not bedownloaded to meet tax obligations.

(1) Forms must be printed on 8.5 x 11-inch single-sheet paper only. There must be twoForms W–2 (Copy A) printed on a page. There must be no horizontal perforations between thetwo Forms W–2 (Copy A) on each page.

(2) All forms and data must be printed in nonreflective black ink only.

(3) The data and forms must be programmed to print simultaneously. Forms cannot beproduced separately from wage data entries.

(4) The forms must not contain corner register marks.

(5) The forms must not contain any shaded areas, including those boxes that are entirelyshaded on the red-ink forms.

(6) Identifying numbers on both Form W–2 (“22222”) and Form W–3 (“33333”) must bepreprinted in 14-point Arial bold font or a close approximation.

(7) The form numbers (“W–2” and “W–3”) must be in 18-point Arial font or a close ap-proximation. The tax year (for example, “2012”) on Forms W–2 (Copy A) and W–3 must bein 20-point Arial font or a close approximation.

(8) No part of the box titles or the data printed on the forms may touch any of the verticalor horizontal lines, nor should any of the data intermingle with the box titles. The data shouldbe centered in the boxes.

(9) Do not print any information in the margins of the substitute black-and-white Copy Aand W–3 forms (for example, do not print “DO NOT STAPLE” in the top margin of FormW–3).

(10) The word “Code” must not appear in box 12 on Form W–2 (Copy A).

(11) A 4-digit vendor code preceded by four zeros and a slash (for example, 0000/9876)must appear in 12-point Arial font, or a close approximation, under the tax year in place ofthe Cat. No. on Form W–2 (Copy A) and in the bottom right corner of the “For Official UseOnly” box at the bottom of Form W–3. Do not display the form producer’s EIN to the left of“Department of the Treasury.” The vendor code will be used to identify the form producer.

(12) Do not print Catalog Numbers (Cat. No.) on either Form W–2 (Copy A) or Form W–3.

(13) Do not print the checkboxes in:

• Box 13 of Form W–2 (Copy A). The “X” should be programmed to be printed and centereddirectly below the applicable box title.

(14) Do not print dollar signs. If there are no money amounts being reported, the entire fieldshould be left blank.

(15) The space between the two Forms W–2 (Copy A) is 1.33 inches.

February 19, 2013 511 2013–8 I.R.B.

.02 You must submit samples of your substitute black-and-white Copy A and W–3 formsto the SSA. Only black-and-white substitute Forms W–2 (Copy A) and W–3 for tax year 2012will be accepted for approval by the SSA. Questions regarding other red-ink forms (that is,red-ink Forms W–2c, W–3c, 1099 series, 1096, etc.) must be directed to the IRS only.

.03 You will be required to send one set of blank and one set of dummy-data substituteblack-and-white Copy A and W–3 forms for approval. Sample data entries should be filled in tothe maximum length for each box entry, preferably using numeric data or alpha data, dependingupon the type required to be entered. Include in your submission the name, telephone number,fax number, and email address of a contact person who can answer questions regarding yoursample forms.

.04 To receive approval, you may first contact the SSA at [email protected] to obtain atemplate and further instructions in PDF or Excel format. You may also send your 2012 samplesubstitute black-and-white Copy A and W–3 forms to:


Send your sample forms via private mail carrier or certified mail in order to verify theirreceipt. You can expect approval (or disapproval) by the SSA within 30 days of receipt of yoursample forms.

.05 The 4-digit vendor code preceded by four zeros and a slash (0000/9876) must bepreprinted on the sample substitute black-and-white Copy A and W–3 forms. Forms notcontaining a vendor code will be rejected and will not be submitted for testing or approval.If you have a valid vendor code provided to you through the National Association of Com-puterized Tax Processors, you should use that code. If you do not have a valid vendor code,contact the Social Security Administration at [email protected] to obtain an SSA-issuedcode. (Additional information on vendor codes may be obtained from the SSA or the NationalAssociation of Computerized Tax Processors (NACTP) via email at [email protected].)

Note. Vendor codes from NACTP are only required by those companies producing the W–2family of forms as part of a product for resale to be used by multiple employers and payrollprofessionals. Employers developing Forms W–2 or W–3 to be used only for their individualcompany require a vendor code issued by the Social Security Administration.

.06 If you use forms produced by a vendor and have questions concerning approval,do not send the forms to the SSA for approval. Instead, you may contact the software vendorto obtain a copy of SSA’s dated approval notice supplied to that vendor.

.07 In response to feedback from the user community, the SSA (and the IRS) have added a2-D barcoded version for the substitute Form W–2 and Form W–3 to the list of acceptable sub-mission formats. This version is an optional alternative to the non-barcoded substitute FormsW–2 and W–3. Both versions are fully supported by the SSA. At this time, neither the IRS northe SSA mandates the use of 2-D barcoded substitute forms.

Note. The data contained in the barcode must not differ from the data displayed on the form.The data in the barcode will be ignored and the data displayed on the form will be consideredthe submission.

To get the barcode information:

• See the SSA’s BSO website at http://www.socialsecurity.gov/bso,• Get the pdf version of the specifications at [email protected],• Download the “TY 12 Substitute W3/W2 2-D Barcoding Standards” from

http://www.socialsecurity.gov/employer/subBarCodeStd.pdf.

2013–8 I.R.B. 512 February 19, 2013

Section 2.3 — Requirements for Substitute Forms Furnished to Employees (CopiesB, C, and 2 of Form W–2)

Note. Rules in Part 2, Section 2.3 (this section), apply only to employee copies of FormW–2 (Copies B, C, and 2). Printers are cautioned that the Paper filers who send Forms W–2(Copy A) to the SSA must follow the requirements in Part 2, Sections 2.1 and/or 2.2 above.

.01 All employers (including those who file electronically) must furnish employees with atleast two copies of Form W–2 (three or more for employees required to file a state, city, orlocal income tax return). The following rules are guidelines for preparing employee copies.

The dimensions of these copies (Copies B, C, and 2), but not Copy A, may differ fromthe dimensions of the official IRS form to allow space for reporting additional information,including additional entries such as withholding for health insurance, union dues, bonds, orcharity in box 14. The limitation of a maximum of four items in box 12 of Form W–2 appliesonly to Copy A, which is filed with the SSA.

Note. Payee statements (Copies B, C, and 2 of Form W–2) may be furnished electronicallyif employees give their consent (as described in Treasury Regulations Section 31.6051–1(j)).See also Publication 15–A, Employer’s Supplemental Tax Guide.

.02 The minimum dimensions for employee copies only (not Copy A) of Form W–2 shouldbe 2.67 inches deep by 4.25 inches wide. The maximum dimensions should be no more than6.5 inches deep by no more than 8.5 inches wide.

Note. The maximum and minimum size specifications in this document are for tax year 2012only and may change in future years.

.03 Either horizontal or vertical format is permitted (see Exhibit D).

.04 The paper for all copies must be white and printed in black ink. The substitute CopyB, which employees are instructed to attach to their federal income tax returns, should be atleast 9-pound paper (basis 17 x 22–500). Other copies furnished to employees should also beat least 9-pound paper (basis 17 x 22–500) unless a state, city, or local government providesother specifications.

.05 Employee copies of Form W–2 (Copies B, C, and 2), including those that are printed ona single sheet of paper, must be easily separated. The best method of separation is to provideperforations between the individual copies. Each copy should be easily distinguished whatevermethod of separation is used.

Note. Perforation does not apply to printouts of copies of Forms W–2 that are furnished elec-tronically to employees (as described in Treasury Regulations Section 31.6051–1(j)). How-ever, these employees should be cautioned to carefully separate the copies of Form W–2. SeePublication 15–A, Employer’s Supplemental Tax Guide, for information on electronically fur-nishing Forms W–2 to employees.

.06 Interleaved carbon and chemical transfer paper employee copies must be clearly legible.Fading must be minimized to assure legibility.

.07 The electronic tax logo on the IRS official employee copies is not required on any ofthe substitute form copies. To avoid confusion and questions by employees, employers areencouraged to delete the identifying number (“22222”) from the employee copies of FormW–2.

.08 All substitute employee copies must contain boxes, box numbers, and box titles thatmatch the official IRS Form W–2. Boxes that do not apply can be deleted. However, certain

February 19, 2013 513 2013–8 I.R.B.

core boxes must be included. The placement, numbering, and size of this information is spec-ified as follows:

• The items and box numbers that constitute the core data are: The core boxes must be printedin the exact order shown on the official IRS form.

Box 1 — Wages, tips, other compensation,Box 2 — Federal income tax withheld,Box 3 — Social security wages,Box 4 — Social security tax withheld,Box 5 — Medicare wages and tips, andBox 6 — Medicare tax withheld.

• The core data boxes (1 through 6) must be placed in the upper right of the form. Substitutevertical-format copies may have the core data across the top of the form. Boxes or otherinformation will definitely not be permitted to the right of the core data.

• The form title, number, or copy designation (B, C, or 2) may be at the top of the form.Also, a reversed or blocked-out area to accommodate a postal permit number or other postalconsiderations is allowed in the upper-right.

• Boxes 1 through 6 must each be a minimum of 11/8 inches wide x 1/4 inch deep.• Other required boxes are:

a) Employee’s social security number,b) Employer identification number (EIN),c) Employer’s name, address, and ZIP code,d) Employee’s name, ande) Employee’s address and ZIP code.

Identifying items must be present on the form and be in boxes similar to those on the officialIRS form. However, they may be placed in any location other than the top or upper right. Youdo not need to use the lettering system (a-c, e-f) used on the official IRS form. The employeridentification number (EIN) may be included with the employer’s name and address and notin a separate box.

Note. Box d (“Control number”) is not required.

.09 All copies of Form W–2 furnished to employees must clearly show the form number,the form title, and the tax year prominently displayed together in one area of the form. Thetitle of Form W–2 is “Wage and Tax Statement.” It is recommended (but not required) thatthis be located on the bottom left of substitute Forms W–2. The reference to the “Departmentof the Treasury — Internal Revenue Service” must be on all copies of substitute Forms W–2furnished to employees. It is recommended (but not required) that this be located on the bottomright of Form W–2.

.10 If the substitute employee copies are labeled, the forms must contain the applicabledescription:

• “Copy B, To Be Filed With Employee’s FEDERAL Tax Return.”• “Copy C, For EMPLOYEE’S RECORDS.”• “Copy 2, To Be Filed With Employee’s State, City, or Local Income Tax Return.”

It is recommended (but not required) that these be located on the lower left of Form W–2. Ifthe substitute employee copies are not labeled as to the disposition of the copies, then writtennotification using similar wording must be provided to each employee.

.11 The tax year (for example, 2012) must be clearly printed on all copies of substitute FormW–2. It is recommended (but not required) that this information be in the middle at the bottomof the Form W–2. The use of 24-pt. OCR-A font is recommended (but not required).

.12 Boxes 1 and 2 (if applicable) on Copy B must be outlined in bold 2-point rule or high-lighted in some manner to distinguish them. If “Allocated tips” are being reported, it is recom-mended (but not required) that box 8 also be outlined. If reported, “Social security tips” (box7) must be shown separately from “Social security wages” (box 3).

2013–8 I.R.B. 514 February 19, 2013

Note. Boxes 8 and 9 may be omitted if not applicable.

.13 If employers are required to withhold and report state or local income tax, the applicableboxes are also considered core information and must be placed at the bottom of the form. Stateinformation is included in:

• Box 15 (State, Employer’s state ID number)• Box 16 (State wages, tips, etc.)• Box 17 (State income tax)

Local information is included in:

• Box 18 (Local wages, tips, etc.)• Box 19 (Local income tax)• Box 20 (Locality name)

.14 Boxes 7 through 14 may be omitted from substitute employee copies unless the employermust report any of that information to the employee. For example, if an employee did not have“Social security tips” (box 7), the form could be printed without that box. But if an employerprovided dependent care benefits, the amount must be reported separately, shown in box 10,and labeled “Dependent care benefits.”

.15 Employers may enter more than four codes in box 12 of substitute Copies B, C, and2 (and 1 and D) of Form W–2, but each entry must use Codes A-EE (see the 2012 GeneralInstructions for Forms W–2 and W–3).

.16 If an employer has employees in any of the three categories in box 13, all checkboxheadings must be shown and the proper checkmark made, when applicable.

.17 Employers may use box 14 for any other information that they wish to give to theiremployees. Each item must be labeled. (See the instructions for box 14 in the 2012 GeneralInstructions for Forms W–2 and W–3.)

.18 The front of Copy C of a substitute Form W–2 must contain the note “This informationis being furnished to the Internal Revenue Service. If you are required to file a tax return, anegligence penalty or other sanction may be imposed on you if this income is taxable and youfail to report it.”

.19 Instructions similar to those contained on the back of Copies B, C, and 2 of the offi-cial IRS Form W–2 must be provided to each employee. An employer may modify or deleteinstructions that do not apply to its employees. (For example, remove Railroad RetirementTier 1 and Tier 2 compensation information for nonrailroad employees or information aboutdependent care benefits that the employer does not provide.)

.20 Employers must notify their employees who have no income tax withheld that they maybe able to claim a tax refund because of the earned income credit (EIC). They will meet thisnotification requirement if they furnish a substitute Form W–2 with the EIC notice on the backof Copy B, IRS Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit(EIC), or on their own statement containing the same wording. They may also change the fonton Copies B, C, and 2 so that the EIC notification and Form W–2 instructions fit differently.For more information about notification requirements, see Notice 1015, “Have You Told YourEmployees About the Earned Income Credit (EIC)?”

Note. An employer does not have to notify any employee who claimed exemption from with-holding on Form W–4, Employee’s Withholding Allowance Certificate, for the calendar year.

February 19, 2013 515 2013–8 I.R.B.

Section 2.4 — Electronic Delivery of Form W–2 and W–2c Recipient Statements.

.01 If you are required to furnish a written statement (Copy B or an acceptable substitute) toa recipient, then you may furnish the statement electronically instead of on paper. This includesfurnishing the statement to recipients of Forms W–2 and W–2c.

If you meet the requirements listed below, you are treated as furnishing the statement timely.

.02 The recipient must consent in the affirmative and not have withdrawn the consent beforethe statement is furnished. The consent by the recipient must be made electronically in a waythat shows that he or she can access the statement in the electronic format in which it will befurnished.

You must notify the recipient of any hardware or software changes prior to furnishing thestatement. A new consent to receive the statement electronically is required after the newhardware or software is put into service.

Prior to furnishing the statements electronically, you must provide the recipient a statementwith the following information prominently displayed:

• If the recipient does not consent to receive the statement electronically, a paper copy willbe provided.

• The scope and duration of the consent. For example, whether the consent applies to everyyear the statement is furnished or only until January 31 immediately following the date ofthe consent.

• How to obtain a paper copy after giving consent.• How to withdraw the consent. The consent may be withdrawn at any time by furnishing

the withdrawal in writing (electronically or on paper) to the person whose name appearson the statement. Confirmation of the withdrawal also will be in writing (electronically oron paper).

• Notice of termination. The notice must state under what conditions the statements will nolonger be furnished to the recipient.

• Procedures to update the recipient’s information.• A description of the hardware and software required to access, print and retain a statement,

and a date the statement will no longer be available on the website.

.03 Additionally, you must:

• Ensure the electronic format contains all the required information and complies with theguidelines in this document.

• If posting the statement on a website, post it for the recipient to access on or before theJanuary 31 due date through October 15 of that year.

• Inform the recipient, in person, electronically or by mail, of the posting and how to accessand print the statement.

For more information, see Regulations Section 31.6051–1(j).

Part 3Additional Instructions

Section 3.1 — Additional Instructions for Form Printers

.01 If electronic media is not used for filing with the SSA, the substitute copies of FormsW–2 (either red-ink or substitute black-and-white forms) should be assembled in the same or-

2013–8 I.R.B. 516 February 19, 2013

der as the official IRS Forms W–2. Copy A should be first, followed sequentially by perforatedsets (Copies 1, B, C, 2, and D).

.02 The substitute form to be filed by the employer with the SSA must carry the designation“Copy A.”

Note. Electronic filers do not submit either red-ink or substitute black-and-white paper FormW–2 (Copy A) or Form W–3 to the SSA.

.03 Substitute forms (red-ink or substitute black-and-white Copy A or W–3) do not requirea copy to be retained by employers (Copy D of Form W–2). However, employers must beprepared to verify or duplicate the information if it is requested by the IRS or the SSA. Paperfilers who do not keep a Form W–2 (Copy D) should be able to generate a facsimile of FormW–2 (Copy A) in case of loss.

.04 Except for copies in the official assembly, no additional copies that may be prepared byemployers should be placed ahead of Form W–2 (Copy C) “For EMPLOYEE’S RECORDS.”

.05 You must provide instructions similar to those contained on the back of Copies B, C,and 2 of the official IRS Form W–2 to each employee. You may print them on the back ofthe substitute Copies B, C, and 2 or provide them to employees on a separate statement. Youdo not need to use the back of Copy 2. If you do not use Copy 2, you may include all theinformation that appears on the back of the official Copies B, C, and 2 on the back of yoursubstitute Copies B and C only. As an example, you may use the “Note” on the back of theofficial Copy C as the dividing point between the text for your substitute Copies B and C. Donot print these instructions on the back of Copy 1. Any Forms W–2 (Copy A) and W–3 thatare filed with the SSA must have no printing on the reverse side.

Section 3.2 — Instructions for Employers

.01 Only originals of Form W–2 (Copy A) and Form W–3 may be filed with the SSA.Carbon copies and photocopies are unacceptable.

.02 Employers should type or machine-print data entries on plain paper forms wheneverpossible. Ensure good quality by using a high-quality type face, inserting data in the middle ofblocks that are well separated from other printing and guidelines, and taking any other measuresthat will guarantee clear, sharp images. Black ink must be used with no script type, invertedfont, italics or dual-case alpha characters.

Note. 12-point Courier font is preferred by the SSA.

.03 Form W–2 (Copy A) requires decimal entries for wage data. Dollar signs should not beprinted with money amounts on the Forms W–2 (Copy A) and W–3.

.04 The employer must provide a machine-scannable Form W–2 (Copy A). The employermust also provide employee copies (Copies B, C, and 2) that are legible and able to be photo-copied (by the employee). Do not print any data in the top margin of the payee copies of theforms.

.05 Any printing in box d (Control number) on Form W–2 or box a on Form W–3 may nottouch any vertical or horizontal lines and should be centered in the box.

.06 The filer’s employer identification number (EIN) must be entered in box b of Form W–2and box e of Form W–3. The EIN entered on Form(s) W–2 (box b) and Form W–3 (box e)must be the same as on Forms 941, 941–SS, 943, 944, CT–1, Schedule H (Form 1040), or anyother corresponding forms filed with the IRS. Be sure to use EIN format (00–0000000) ratherthan SSN format (000–00–0000).

.07 The employer’s name, address, and EIN may be preprinted.

February 19, 2013 517 2013–8 I.R.B.

Section 3.3 — OMB Requirements for Both Red-Ink and Black-and-White Copy A andW–3 Substitute Forms

.01 The Paperwork Reduction Act (the Act) of 1995 (Public Law 104–13) requires the fol-lowing:

• The Office of Management and Budget (OMB) approves all IRS tax forms that are subjectto the Act.

• Each IRS form contains (in or near the upper right corner) the OMB approval number, ifassigned. (The official OMB numbers may be found on the official IRS printed forms andare also shown on the forms in Exhibits A, B, C, E, and F.)

• Each IRS form (or its instructions) states:

(1) Why the IRS needs the information,

(2) How it will be used, and

(3) Whether or not the information is required to be furnished to the IRS.

.02 This information must be provided to any users of official or substitute IRS forms orinstructions.

.03 The OMB requirements for substitute IRS Form W–2 (Copy A) and Form W–3 are thefollowing.

• Any substitute form or substitute statement to a recipient must show the OMB number asit appears on the official IRS form.

• The OMB number (1545–0008) must appear exactly as shown on the official IRS form.• For any copy of Form W–2 other than Copy A, the OMB number must use one of the

following formats:

(1) OMB No. 1545–xxxx (preferred) or

(2) OMB # 1545–xxxx (acceptable).

.04 Any substitute Form W–2 (Copy A only) and Form W–3, must state “For Privacy Actand Paperwork Reduction Act Notice, see back of Copy D.” If no instructions are provided tousers of your forms, you must furnish them with the exact text of the Privacy Act and Paper-work Reduction Act Notice.

Section 3.4 — Reproducible Copies of Forms

.01 You can obtain official IRS forms and information copies of federal tax materials atlocal IRS offices or by calling the IRS Distribution Center at 1–800–829–3676. Other ways toget federal tax material include the following.

• Accessing IRS.gov.• Ordering IRS Tax Products on DVD (Publication 1796).

Only contact the IRS, not the SSA, for forms.

Note. Many IRS forms are provided at IRS.gov and on the IRS Tax Products on DVD. Butcopies of Form W–2 (Copy A) and Form W–3 cannot be used for filing with the SSA whenobtained by these methods because the forms do not meet the specific printing specificationsas described in this publication. Copies of Forms W–2 and W–3 obtained from these sourcesare for information purposes only.

2013–8 I.R.B. 518 February 19, 2013

.02 The DVD contains approximately 2,500 tax forms and publications for small businesses,return preparers, and others who frequently need current or prior year tax products. Most cur-rent tax forms on the DVD may be filled in electronically, then printed out for submission andsaved for recordkeeping. Other products on the DVD include the Internal Revenue Bulletins,Tax Supplements, and Internet resources and links for the tax professional.

For system requirements, contact the National Technical Information Service (NTIS) athttp://www.htis.gov. Prices are subject to change. The cost of the DVD if purchased fromNTIS via the Internet at is $30 (with no handling fee). If purchased using the following meth-ods, the cost for each DVD is $30 (plus a $6 handling fee). These methods are:

• By phone – 1–877–CDFORMS (1–877–233–6767) (For IRS DVD purchase only),• By fax – 703–605–6900 (For IRS DVD purchase only),• By mail – to:

National Technical Information Service5301 Shawnee RoadAlexandria, VA 22312

Section 3.5 — Effect on Other Documents

.01 Revenue Procedure 2011–62, 2011–52 I.R.B. 1032, dated December 27, 2011 (reprintedas Publication 1141, Revised 12–2011), is superseded.

Section 3.6 — Exhibits

The measurements for the 2012 Forms W-2 and W-3 exhibits have not changed from 2011,and will be posted in the 2012 revision of Publication 1141.

February 19, 2013 519 2013–8 I.R.B.

Definition of TermsRevenue rulings and revenue procedures(hereinafter referred to as “rulings”) thathave an effect on previous rulings use thefollowing defined terms to describe the ef-fect:

Amplified describes a situation whereno change is being made in a prior pub-lished position, but the prior position is be-ing extended to apply to a variation of thefact situation set forth therein. Thus, ifan earlier ruling held that a principle ap-plied to A, and the new ruling holds that thesame principle also applies to B, the earlierruling is amplified. (Compare with modi-fied, below).

Clarified is used in those instanceswhere the language in a prior ruling is be-ing made clear because the language hascaused, or may cause, some confusion.It is not used where a position in a priorruling is being changed.

Distinguished describes a situationwhere a ruling mentions a previously pub-lished ruling and points out an essentialdifference between them.

Modified is used where the substanceof a previously published position is beingchanged. Thus, if a prior ruling held that aprinciple applied to A but not to B, and thenew ruling holds that it applies to both A

and B, the prior ruling is modified becauseit corrects a published position. (Comparewith amplified and clarified, above).

Obsoleted describes a previously pub-lished ruling that is not considered deter-minative with respect to future transac-tions. This term is most commonly used ina ruling that lists previously published rul-ings that are obsoleted because of changesin laws or regulations. A ruling may alsobe obsoleted because the substance hasbeen included in regulations subsequentlyadopted.

Revoked describes situations where theposition in the previously published rulingis not correct and the correct position isbeing stated in a new ruling.

Superseded describes a situation wherethe new ruling does nothing more than re-state the substance and situation of a previ-ously published ruling (or rulings). Thus,the term is used to republish under the1986 Code and regulations the same po-sition published under the 1939 Code andregulations. The term is also used whenit is desired to republish in a single rul-ing a series of situations, names, etc., thatwere previously published over a period oftime in separate rulings. If the new rul-ing does more than restate the substance

of a prior ruling, a combination of termsis used. For example, modified and su-perseded describes a situation where thesubstance of a previously published rulingis being changed in part and is continuedwithout change in part and it is desired torestate the valid portion of the previouslypublished ruling in a new ruling that is selfcontained. In this case, the previously pub-lished ruling is first modified and then, asmodified, is superseded.

Supplemented is used in situations inwhich a list, such as a list of the names ofcountries, is published in a ruling and thatlist is expanded by adding further names insubsequent rulings. After the original rul-ing has been supplemented several times, anew ruling may be published that includesthe list in the original ruling and the ad-ditions, and supersedes all prior rulings inthe series.

Suspended is used in rare situations toshow that the previous published rulingswill not be applied pending some futureaction such as the issuance of new oramended regulations, the outcome of casesin litigation, or the outcome of a Servicestudy.

AbbreviationsThe following abbreviations in current useand formerly used will appear in materialpublished in the Bulletin.

A—Individual.Acq.—Acquiescence.B—Individual.BE—Beneficiary.BK—Bank.B.T.A.—Board of Tax Appeals.C—Individual.C.B.—Cumulative Bulletin.CFR—Code of Federal Regulations.CI—City.COOP—Cooperative.Ct.D.—Court Decision.CY—County.D—Decedent.DC—Dummy Corporation.DE—Donee.Del. Order—Delegation Order.DISC—Domestic International Sales Corporation.DR—Donor.E—Estate.EE—Employee.E.O.—Executive Order.

ER—Employer.ERISA—Employee Retirement Income Security Act.EX—Executor.F—Fiduciary.FC—Foreign Country.FICA—Federal Insurance Contributions Act.FISC—Foreign International Sales Company.FPH—Foreign Personal Holding Company.F.R.—Federal Register.FUTA—Federal Unemployment Tax Act.FX—Foreign corporation.G.C.M.—Chief Counsel’s Memorandum.GE—Grantee.GP—General Partner.GR—Grantor.IC—Insurance Company.I.R.B.—Internal Revenue Bulletin.LE—Lessee.LP—Limited Partner.LR—Lessor.M—Minor.Nonacq.—Nonacquiescence.O—Organization.P—Parent Corporation.PHC—Personal Holding Company.PO—Possession of the U.S.PR—Partner.

PRS—Partnership.PTE—Prohibited Transaction Exemption.Pub. L.—Public Law.REIT—Real Estate Investment Trust.Rev. Proc.—Revenue Procedure.Rev. Rul.—Revenue Ruling.S—Subsidiary.S.P.R.—Statement of Procedural Rules.Stat.—Statutes at Large.T—Target Corporation.T.C.—Tax Court.T.D. —Treasury Decision.TFE—Transferee.TFR—Transferor.T.I.R.—Technical Information Release.TP—Taxpayer.TR—Trust.TT—Trustee.U.S.C.—United States Code.X—Corporation.Y—Corporation.Z —Corporation.

2013–8 I.R.B. i February 19, 2013

Numerical Finding List1

Bulletins 2013–1 through 2013–8

Announcements:

2013-1, 2013-1 I.R.B. 251

2013-2, 2013-2 I.R.B. 271

2013-3, 2013-2 I.R.B. 271

2013-4, 2013-4 I.R.B. 440

2013-5, 2013-3 I.R.B. 306

2013-6, 2013-3 I.R.B. 307

2013-7, 2013-3 I.R.B. 308

2013-8, 2013-4 I.R.B. 440

2013-9, 2013-4 I.R.B. 441

2013-10, 2013-3 I.R.B. 311

2013-11, 2013-6 I.R.B. 483

Notices:

2013-1, 2013-3 I.R.B. 281

2013-2, 2013-6 I.R.B. 473

2013-3, 2013-7 I.R.B. 484

2013-7, 2013-6 I.R.B. 477

2013-8, 2013-7 I.R.B. 486

2013-10, 2013-8 I.R.B. 503

Proposed Regulations:

REG-141066-09, 2013-3 I.R.B. 289

REG-148873-09, 2013-7 I.R.B. 494

REG-122707-12, 2013-5 I.R.B. 450

Revenue Procedures:

2013-1, 2013-1 I.R.B. 1

2013-2, 2013-1 I.R.B. 92

2013-3, 2013-1 I.R.B. 113

2013-4, 2013-1 I.R.B. 126

2013-5, 2013-1 I.R.B. 170

2013-6, 2013-1 I.R.B. 198

2013-7, 2013-1 I.R.B. 233

2013-8, 2013-1 I.R.B. 237

2013-9, 2013-2 I.R.B. 255

2013-10, 2013-2 I.R.B. 267

2013-11, 2013-2 I.R.B. 269

2013-12, 2013-4 I.R.B. 313

2013-13, 2013-6 I.R.B. 478

2013-14, 2013-3 I.R.B. 283

2013-15, 2013-5 I.R.B. 444

2013-16, 2013-7 I.R.B. 488

2013-18, 2013-8 I.R.B. 503

Revenue Rulings:

2013-1, 2013-2 I.R.B. 252

2013-3, 2013-8 I.R.B. 500

Treasury Decisions:

9603, 2013-3 I.R.B. 273

9607, 2013-6 I.R.B. 469

Treasury Decisions— Continued:

9608, 2013-3 I.R.B. 274

1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2012–27 through 2012–52 is in Internal Revenue Bulletin2012–52, dated December 27, 2012.

February 19, 2013 ii 2013–8 I.R.B.

Finding List of Current Actions onPreviously Published Items1

Bulletins 2013–1 through 2013–8

Notices:

2011-14

Amplified and supplemented by

Notice 2013-7, 2013-6 I.R.B. 477

2011-38

Obsoleted by

REG-148873-09, 2013-7 I.R.B. 494

2012-60

Superseded by

Notice 2013-1, 2013-3 I.R.B. 281

Proposed Regulations:

REG-140668-07

Corrected by

Ann. 2013-6, 2013-3 I.R.B. 307

Revenue Procedures:

87-57

Modified by

Rev. Proc. 2013-13, 2013-6 I.R.B. 478

2004-66

Modified and superseded by

Rev. Proc. 2013-11, 2013-2 I.R.B. 269

2008-35


Rev. Proc. 2013-14, 2013-3 I.R.B. 283

2008-50


Rev. Proc. 2013-12, 2013-4 I.R.B. 313

2011-49

Modified by

Rev. Proc. 2013-6, 2013-1 I.R.B. 198

2011-52

Modified and partly superseded by

Rev. Proc. 2013-15, 2013-5 I.R.B. 444

2011-55

Amplified and supplemented by

Notice 2013-7, 2013-6 I.R.B. 477

2011-62

Superseded by

Rev. Proc. 2013-18, 2013-8 I.R.B. 503

2012-1

Superseded by

Rev. Proc. 2013-1, 2013-1 I.R.B. 1

2012-2

Superseded by

Rev. Proc. 2013-2, 2013-1 I.R.B. 92

Revenue Procedures— Continued:

2012-3

Superseded by

Rev. Proc. 2013-3, 2013-1 I.R.B. 113

2012-4

Superseded by

Rev. Proc. 2013-4, 2013-1 I.R.B. 126

2012-5

Superseded by

Rev. Proc. 2013-5, 2013-1 I.R.B. 170

2012-6

Superseded by

Rev. Proc. 2013-6, 2013-1 I.R.B. 198

2012-7

Superseded by

Rev. Proc. 2013-7, 2013-1 I.R.B. 233

2012-8

Superseded by

Rev. Proc. 2013-8, 2013-1 I.R.B. 237

2012-9

Superseded by

Rev. Proc. 2013-9, 2013-2 I.R.B. 255

2012-10

Superseded by

Rev. Proc. 2013-10, 2013-2 I.R.B. 267

2012-30

Corrected and clarified by

Ann. 2013-3, 2013-2 I.R.B. 271

Updated by

Ann. 2013-10, 2013-3 I.R.B. 311

2012-46

Corrected by

Ann. 2013-11, 2013-6 I.R.B. 483

2013-1

Corrected by

Ann. 2013-9, 2013-4 I.R.B. 441

Treasury Decisions:

9564

Corrected by

Ann. 2013-4, 2013-4 I.R.B. 440

Amended by

Ann. 2013-7, 2013-3 I.R.B. 308

1 A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2012–27 through 2012–52 is in Internal Revenue Bulletin 2012–52, dated December 27,2012.

2013–8 I.R.B. iii February 19, 2013

Internal Revenue ServiceWashington, DC 20224Official BusinessPenalty for Private Use, $300

INTERNAL REVENUE BULLETINThe Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue

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sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. The IRS will not createCumulative Bulletins after the 2008–2 edition. Subscribers to the weekly Bulletin are notified when copies of the Cumulative Bulletinare available. Certain issues of Cumulative Bulletins are out of print and are not available. Persons desiring available CumulativeBulletins, which are listed on the reverse, may purchase them from the Superintendent of Documents.

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